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Assume that today, the annualized two-year interest rate is 12%, and the one-year interest rate is 9.5%. A three year security has an annualized interest

Assume that today, the annualized two-year interest rate is 12%, and the one-year interest rate is 9.5%. A three year security has an annualized interest rate of 14%. Assuming that interest is compounded, what is the one-year forward rate (i.e., the rate on a security with a one year maturity)two years from now?

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